FINRA Clarifies Proposed Changes to Outside Activities Rule

Posted on May 12th, 2025 at 2:15 PM
FINRA Clarifies Proposed Changes to Outside Activities Rule

From the desk of Jim Eccleston at Eccleston Law

FINRA released a statement this week addressing misconceptions surrounding its proposed updates to the rules governing outside business activities by associated persons of broker-dealers. According to FINRA’s Weekly Update, Regulatory Notice 25-05 aims to streamline current requirements and ease unnecessary regulatory burdens.

FINRA emphasizes that the proposal introduces no new reporting or approval obligations. Instead, the proposal clarifies that personal investments in non-securities remain excluded from reporting requirements. Additionally, the proposal does not create new responsibilities for broker-dealers concerning unaffiliated investment adviser activities, nor does it impose obligations on broker-dealers for activities conducted within affiliated entities, such as investment advisers, insurance companies, or banks.

FINRA encouraged industry participants to review the full text of Regulatory Notice 25-05 and submit feedback based on the actual content rather than mischaracterizations. The comment period remains open through May 13.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

March 13, 2026
Connecticut Advisor Pleads Guilty to Ponzi-Like Investment Fraud and Tax Evasion

Federal prosecutors announced that investment adviser John A.

March 12, 2026
Cape Coral Becomes Ground Zero for Private Lending Strains in Post-Pandemic Housing Market

Cape Coral, Florida, long a magnet for out-of-state real estate investors, now illustrates the growing risks of private lending in residential development.

March 11, 2026
SEC and Commonwealth Financial Network Move Toward Settlement in Revenue Sharing Disclosure Case

The Securities and Exchange Commission (SEC) and Commonwealth Financial Network notified a federal court that they are attempting to resolve a long running enforcement dispute involving alleged disclosure failures tied to revenue sharing payments, according to ThinkAdvisor.